Bears won the intraday battle for the second day in a row yesterday. The market opened sharply higher, but sellers spent the day wheedling off points and closed the market near daily lows. The market has been moving higher on declining volume as well. After last week's sharp drop, and the thus far weak recovery, it makes sense to look for another leg down after this bounce is played out.
All of that said, today the market awaits a load of pre market economic data. European stocks are off in front of the data release and frankly, no one really knows how the market is going to react here. Will it rally as the market once again builds hope for more rate cuts? Or, will bears finally get the catalyst they need to break down this dead cat bounce? These are two important questions that will be decided after the open today.
1 comment:
with the market today starting definitely higher, i think it will still be under 12275(dow) for a while or even close under this level. in this way the market makers are leaving a sign for their down action in the next days: good data cannot rise the market as well. regard,wez.
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